Uber, Lyft Can Slash Injury Payouts to Unbuckled Passengers

Insurers for rideshare firms like Uber and Lyft received a subtle win in Michigan court that could allow companies to drastically reduce injury payouts for riders that don’t buckle their seatbelts.

The state’s 5% limit on how much insurance companies can reduce injured front-passenger payouts because the rider didn’t buckle doesn’t apply to the backseat, a unanimous Michigan Court of Appeals ruled Thursday. That means injured passengers could see much lower insurance payouts.

“The plain language of MCL 257.710e(3) clearly and unambiguously applies to operators and front-seat passengers of motor vehicles only,” the court said in its unauthored opinion. ...